Creating and managing wealth for an SMSF client requires specialist understanding of products, markets and investment rules. SMSF Adviser brings you expert insight and high-level strategies so you can ensure the financial success of your SMSF clients.

Education and professional development is a fundamental component of providing your clients with quality advice, and standing out as a specialist in the market. SMSF Adviser brings you exclusive access to educational content to help you stay at the top of your game.

Up-to-date, specialised strategy is core component of an SMSF professional’s arsenal. SMSF Adviser analyses and interprets regulatory and legislative changes to ensure the SMSF sector is kept informed on the tips, tools and best practice for serving SMSF trustees.

SMSF Adviser also keeps professionals informed on what strategies cutting-edge businesses are using to keep ahead of the competition, including what technologies, marketing tools and HR strategies are getting the best results.

LRBA roadblocks tipped to see unit trusts surge in popularity

With LRBAs facing further regulatory restrictions, major lenders pulling out of the market and Labor proposing a ban on them, the use of trust structures is likely to see an uptick, according to a technical expert.

Speaking to SMSF Adviser, Insyt chief executive Darren Wynen said that Labor has consistently said that they will prohibit SMSFs from entering limited recourse borrowing arrangements for housing investments if it wins the next election.

Given some of these changes around LRBAs, Mr Wynen said that greater numbers of SMSF trustees may instead consider the possibility of gearing through a unit trust where there are unrelated parties involved.

“Historically, that’s always been around and in some ways that’s less onerous than borrowing at the fund level,” Mr Wynen said.

“I think we’ve already started to see that and it will continue to grow as a result of not only Labor’s proposed ban for LRBAs but also the restrictions on making non-concessional contributions for those with a total superannuation balance of more than $1.6 million.”

Unit trust structures already have an appeal to some clients anyway, particularly due to the price of property, he said.

“If you’re looking to invest in a property, then you really need to amalgamate the investment power,” he explained.

“I think geared unit trusts where there’s no control have always traditionally been popular, and I think they will continue to be even more popular and not just for borrowing.”